Saipem is one of the largest Italian companies in the energy sector and in the construction of oil and gas infrastructures. However, in recent years the company has gone through a difficult period that has called into question its financial soundness and its ability to compete in the international market. In this article, we will try to understand Saipem’s current situation, analyzing analysts’ forecasts for 2023 and assessing whether it is worth buying Saipem shares today.
In addition, we will discuss Saipem’s TERP and investor opinions on the company’s forum. Saipem: forecasts and analysis According to analysts’ forecasts, Saipem is expected to record revenue growth of 10% by 2023, thanks to the recovery of the oil market and the diversification of the company’s activities. However, Saipem’s financial situation remains precarious, with net debt exceeding €2 billion and a net loss of €1.5 billion in 2020. Despite this, many analysts believe that Saipem has great growth potential, thanks to its global presence and its specialization in innovative sectors such as renewable energy and offshore wind.
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Buying Saipem shares today: is it worthwhile?
The answer to this question depends on the expectations of the investor and his level of risk. At the moment, Saipem shares are trading around 1.50 euros, with a market value of around 2.5 billion euros. Considering that Saipem has a turnover of over 8 billion euros and a global presence, many people believe that the share price is below their intrinsic value. However, it must also be considered that Saipem has a precarious financial situation and that the energy sector is subject to many uncertainties, such as the transition to renewable energy and the volatility of oil prices. For this reason, investors should carefully assess the risks and opportunities of investing in Saipem.
TERP Saipem: what it is and how it works
Saipem’s TERP (Total Equity Return Premium) is a financial transaction through which the company sold 49% of its subsidiary Saipem Energy Services to a consortium of investors. This transaction has allowed Saipem to reduce its debt and focus on the company’s core activities. However, TERP Saipem raised some concerns among investors, as it resulted in a reduction in the dividend and a dilution of the value of the shares. At the same time, many analysts believe that Saipem’s TERP is a strategic move to strengthen the company’s position in the market and reduce its debt.
Saipem Forum: investor opinions
Finally, it is interesting to analyse the opinions of investors on the forum dedicated to Saipem. Many users express concern about the company’s financial situation and the volatility of the energy sector, but at the same time underline Saipem’s great growth potential and its ability to innovate and diversify. In addition, many investors believe that Saipem’s share price is below their intrinsic value and that there are good long-term investment opportunities.
Conclusions and suggestions
In conclusion, Saipem is a company with great growth potential, but also with some financial and operational problems. Investors should carefully assess the risks and opportunities of investing in Saipem, considering the market environment and analysts’ forecasts. In any case, it is important to keep in mind that investing in stocks always involves a certain degree of risk and that the best choice depends on the expectations and risk profile of the investor. Finally, a new suggestion for investors is to also evaluate the opportunities offered by mutual funds, which allow you to diversify the portfolio and reduce investment risk. In particular, mutual funds that invest in companies in the energy and infrastructure sector could be a good choice for those who want to invest in Saipem without exposing their portfolio to excessive risk.